Loan applications by credit profile
Last week we looked at how smaller loans aren’t always high risk, now we’ll examine loan applications by credit profile. Table 1 shows results from 50,000 applications to community credit unions in Great Britain (GB), sorted by credit rating. Table 2 shows 5,000 applications to community credit unions in Northern Ireland (NI). Applications by credit profile…
Read MoreSmaller loans aren’t always high risk
Credit unions take note: smaller loans aren’t always high risk. Nor are they always for people who are out of work. For this analysis, we looked at the last six months’ of data from over £500m + of loans assessed by NestEgg’s decision engine. Firstly, one third of all loans to community credit unions came…
Read MoreCredit unions and the Consumer Duty
The new FCA Consumer Duty requires a shift in practice by many lenders. Mutuals, including credit unions, on the other hand have a head start. Their commitment to member service rather than consumer sales means it is easier to meet the overriding objective of the Duty; to deliver good outcomes for members. Furthermore, credit unions…
Read MoreCredit unions improve credit scores
Credit unions improve credit scores That’s just one finding of many, as NestEgg hits a new milestone; £500,000,000 of loans assessed! Our decision engine is now processing one in every four credit union loans. That’s roughly one per minute. These data reveal new lending insights that we’ll be sharing over the coming weeks. Some insights…
Read MoreBetter lending during the cost of living crisis
How do we ensure better lending during the cost of living crisis? Accept rates for credit union loans have fallen significantly over the last year. This can be partly explained by the increasing indebtedness of borrowers. The average non-mortgage debt of credit union applicants rose by 14% in the year ending February 2023. However, applicant…
Read MoreBuy Now Pay Later for Credit Union Borrowers
We can now see how Buy Now Pay Later for Credit Union borrowers is impacting their credit reports. There was a big upload of Buy Now Pay Later (BNPL) agreements to the credit bureau at the end of January. These data are now returned to our decision engine. Currently BNPL does not have an impact…
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